factual

Is an All States M.E.D. franchisee required to provide independent access to information generated in their computer systems?

All_States_M_E_D Franchise · 2024 FDD

Answer from 2024 FDD Document

Independent Access to Information. We have, and you are required to, provide independent access to the information that will be generated or stored in your computer systems, which includes, but not limited to, customer, transaction, and operational information. We have the right to review your business operations, in person, by mail, or electronically, and to inspect your operations and obtain your paper and electronic business records related to the Franchised Business and any other operations taking place through your Franchised Business.

12.7 Release of Records

Under Right To Inspect, at Franchisor's request Franchisee shall authorize Franchisor and/or its direct third party(s), including accounting and legal professionals, to release to Franchisor all accounting and financial records arising from or relating to the operation of the Franchised Business including, but not limited to, records evidencing Gross Revenues, profits, losses, income, tax liabilities, tax payments, revenues, expenses, and any correspondence, notes, memoranda, audits, business records, or internal accounts within said third parties' possession, custody or control, and to continue to release such records to Franchisor on a monthly basis for the length of the unexpired term of this Agreement or until such time as Franchisor withdraws its request. Franchisee shall execute all documents necessary to facilitate the release of records referenced herein to Franchisor.

Source: Item 23 — RECEIPTS (FDD pages 44–174)

What This Means (2024 FDD)

According to All States M.E.D.'s 2024 Franchise Disclosure Document, franchisees are required to provide independent access to information generated or stored in their computer systems. This includes customer, transaction, and operational information.

All States M.E.D. retains the right to review a franchisee's business operations through various means, including in-person inspections, mail correspondence, or electronic access. They can also inspect operations and obtain both paper and electronic business records related to the franchised business and any other activities taking place through it.

Furthermore, at All States M.E.D.'s request, the franchisee must authorize the franchisor and/or its direct third parties (including accounting and legal professionals) to access all accounting and financial records related to the operation of the franchised business. This includes records evidencing gross revenues, profits, losses, income, tax liabilities, tax payments, revenues, expenses, and any related correspondence, notes, memoranda, audits, business records, or internal accounts. The franchisee must continue to release such records monthly for the duration of the franchise agreement or until the franchisor withdraws the request and must execute all documents necessary to facilitate the release of these records.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.